Allegheny outlook pressures utilities

Investors don't like Mirant's delay

By

LisaSanders

NEW YORK (CBS.MW) - Allegheny Energy's financial outlook sent shares down more than 30 percent Wednesday and weighed on peers in the utility group.

The Philadelphia Utility Index
UTY, +0.54%
sank 1.7 percent to finish at 234.31 as Allegheny plunged 32.3 percent to close at $5.55, a loss of $2.65. The stock was the most actively traded issue in the energy sector Wednesday with volume of 16.6 million.

Late Tuesday, Allegheny
AYE
said it had landed $2.4 billion in critical new bank facilities after months of delay.

Also Tuesday, Allegheny filed an 8-K with the Securities and Exchange Commission with low projections for cash flow and net income. See story.

Shares of Mirant took a turn for the worse after the company delayed its year-end report scheduled for Tuesday. Mirant
MIR, -20.00%
lost 14.2 percent to close at $1.39. See story.

In commodities action, April crude added $1.64 to settle at $37.70 a barrel on the New York Mercantile Exchange as war with Iraq appeared more imminent. It touched $38 at session's peak - it's highest level since the Persian Gulf War. See more. Natural gas for March delivery gave up 44.4 cents to settle at $9.133 per million British thermal units. See Futures Movers. April natural gas, which became the front-month contract at session's end, rose by 80.6 cents to settle at $7.39.

Dow component ExxonMobil
XOM, -2.26%
was the second-most active stock in energy trading with volume of 12.2 million. The stock lost 30 cents to close at $34.84. For more energy news, read Energy Watch.

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